Electric Deregulation Bill Fizzles

Utilities Succeed In Keeping Status Quo

The move to bring consumer choice to electric power in Florida will die this legislative session without getting a hearing, much less a vote.

If the electric deregulation bill had passed, it would have allowed residential and business users to shop for an electric utility just as they shop for a long-distance phone company.

Consumers would have seen an estimated 10 percent savings on their annual electric bill, said state Sen. Charlie Crist, R-St.Petersburg, who proposed the legislation.

But lack of support for the bill shows skepticism of the benefits of electric deregulation in Florida and the power of the state's utility lobby.

``There was not enough momentum to move the bill. The utility lobby is very powerful here in Tallahassee,'' said Crist, who is running for U.S. Senate against incumbent Bob Graham. ``I was definitely disappointed . . . [The bill) was bottled up pretty well.''

With electric power deregulation a hot topic in Washington, D.C., and many states, interest was high in the bill when first proposed. It also had backing from many of Florida's largest businesses, which usually gets a bill at least a hearing in Tallahassee.

The Florida Retail Federation, which supported the legislation, predicted its members would have seen a 20 percent annual savings. The federation has 8,000 members in the state, including prominent retailers such as Dillard's and Burdines, as well as small stores.

But consumer advocates weren't so certain, wondering if electric deregulation would head the way cable and telephone deregulation have gone: substantial benefits to most businesses, but higher prices for residential customers and small businesses. They urged Florida to wait and see how deregulation went in other states.

``This [bill) was showboating for the senator involved and it was all industry people supporting it,'' said Monte Belote, executive director of the Florida Consumer Action Network. ``This was premature because there is no hue and cry for electric deregulation in Florida and there are no certain benefits to anyone.''

Utility companies, including Florida Power & Light lobbied against it. ``In our view, the system that Florida has now has served consumers well overall,'' spokesman Dale Thomas said. ``Overall, there is no compelling reason to change the system.''

Other states, most notably California, have legislation breaking up electric utility monopolies and forcing competition.

Congress has several bills pending to deregulate nationally. The Florida Public Service Commission has also begun considering how electric deregulation might work in this state.

But, for this session at least, the issue is going nowhere in the Florida Legislature.